About TSB
TSB is a retail and commercial bank with a history stretching back 200 years. Today, they operate a network of over 220 branches and offer products and services including current accounts, savings accounts, insurance and credit cards, as well as mortgages.
According to data released by trade association UK Finance in 2023, TSB are the UK’s 10th biggest mortgage lender in terms of amount lent and outstanding balances.
What type of mortgages do TSB offer?
TSB offer a range of mortgages aimed at the following types of customer:
There are exclusive products available for existing customers, people who are purchasing a green property or making eco-friendly home improvements, and those who are applying through a government scheme, such as Shared Ownership or Right to Buy.
Their product line features 2, 3 and 5-year fixed rate mortgages as well as 2-year trackers. There are also 10-year fixes for product transfer and additional borrowing customers.
Interest-only mortgages
TSB offer interest-only as a repayment option as long as the borrower can evidence an acceptable repayment vehicle during the application process.
Repayment vehicles they will approve include:
- Investment ISAs
- Unit Trusts or an OEIC
- Investment bonds
- Stocks and shares
Borrowers can use a combination of different repayment vehicles if they have investments that are spread around, or would struggle to settle the debt with just one.
Lending criteria
The lending criteria for a residential mortgage from TSB is as follows:
- Deposit requirements: Start at 5% of the property’s value but superior rates and deals are available for borrowers who can put down extra.
- Credit history: Will lend to borrowers with some forms of bad credit on their file, such as county court judgements or missed payments, but the most severe issues, including bankruptcies and IVAs, need to have been settled for at least six years.
- Age: The maximum age borrowers can be at the beginning of a TSB mortgage application is 70, or 75 if they are declaring pension income.
- Employment history: Self-employed mortgage applicants will need at least two years’ accounts for the affordability assessment. There are no minimum employment history requirements for applicants in full-time job roles.
What mortgage rates are available?
At the time of writing (January 2024), interest rates and TSB residential mortgages start at 4.24% for a 2-year fixed-rate mortgage with 60% LTV. This deal is, however, exclusively for product transfer customers. The lowest rate for a purchase mortgage is currently 4.54% for a 2-year fixed rate with the same loan-to-value ratio and a product fee of £995.
Interest rates gradually increase as the LTV ratio rises, with some of the products with the highest interest rates being low-deposit mortgages (90-95% LTV).
Buy-to-let mortgage rates from TSB start at 4.79% for a 5-year fixed-rate deal at 60% LTV. At the top end of the scale, they reach 5.89% for a 2-year tracker (60-75% LTV).
TSB’s standard variable rate is currently 8.74%.
Want to know how these rates compare to the competition? You can browse mortgage deals from TSB and other lenders across the market for FREE on Teito - get started here.
How much will TSB let you borrow?
TSB cap their maximum mortgage lending at between 4.25 times annual income and 4.75 times annual income. Their maximum loan amount for a residential mortgage is £1 million.
Does TSB have good reviews for its mortgage services?
TSB currently holds an average rating of 4.2/5 on TrustPilot for all of its products and services. This score is based on feedback from almost 21,500 customers.
The lender also has an average rating of 5/5 on YesCanDo Money, based on 846 reviews, and 3.8/5 based on 15 reviews from users on Smart Money People.
Compare TSB’s mortgage rates and deals today
We offer a free service that allows you to compare the latest mortgage rates from TSB with other lenders from across the market, and choose the deal you want in real time.
Follow the steps below to browse up-to-date rates and choose your mortgage online:
Get started here: Then select whether you are looking for a two-year fixed-rate mortgage to buy a property or for remortgage purposes.
Specify the purpose of the property: You can compare two-year fixed-rate mortgages for residential or buy-to-let purposes, as well as remortgages.
Choose your own mortgage: Finally, tell us what stage you are at in the process and you can compare rates from across the market and choose the deal you want.
After you have selected a mortgage deal, one of our mortgage brokers will check over your application before securing an agreement in principle for you. They will be on hand to offer bespoke advice, make sure you’re getting the best deal, and oversee your application.
FAQs
Does TSB offer mortgages in Scotland and Northern Ireland?
TSB mortgages are available in Scotland, including the Shetland Islands, Orkney Islands, Outer Hebrides, Inner Hebrides and Clyde Islands, as well as the Scottish mainland.
They do not offer mortgages in Northern Ireland at the time of writing.
Can I make overpayments on my TSB mortgage?
Yes. TSB allows its mortgage holders to make overpayments as either a lump sum or monthly instalment. Most of its mortgages allow you to overpay by 10% of the outstanding debt each month without penalty, but some products have a higher cap than this.
Do TSB offer contractor mortgages?
Yes. As long as the applicant has 12 months’ contract history, evidencing no gaps in employment of longer than six weeks during that period. They will also need to have at least three months’ remaining on their contract, or be able to present evidence of another contract they have lined up which will keep them in employment for the next three months.
